Kano State Pension Board Clears N21bn out of N48.6bn Owed Pensions
The Kano State Pension Board has so far cleared over N21 billion in pension liabilities out of a total debt of N48.6 billion inherited from the previous administrations in the state.
The Executive Chairman of the Kano State pension fund trustees, Alhaji Habu Fagge. made this known while addressing newsmen in Kano. ”The state the board was at the time of the current administration’s takeover was “deeply troubling.
”Pensioners suffered irregular and arbitrary deductions under the previous government, sometimes losing half of their meager monthly entitlements.
“At one point, pensioners receiving N6,000 had N3,000 deducted without explanation. We couldn’t find any clear formula for the deductions,” he said. According to the executive chairman, the previous administration borrowed from the pension fund.
He said part of the recovery began when Gov. Abba Yusuf approved deductions from the source for pension remittances, restoring regular payments and enabling the board to reach 100 per cent monthly pension disbursement.
“We inherited N48.6 billion in liabilities and also had to remit N75 billion that had been levied on local governments and some MDAs. “Inspite of this, we’ve managed to settle N16 billion so far, with another N5 billion scheduled for disbursement soon,” Fagge said.
He praised the governor for showing empathy, noting that “even though the debt was inherited, the governor took responsibility and ensured payments were made, purely out of concern for the pensioners.” The chairman also clarified the board’s involvement in housing projects in Bandirawo, Kwankwasiyya and Amana in the state.
Under the past government, he said,the board loaned funds for property investments, which led to legal disputes, and that following a court ruling and negotiations, 324 housing units were allocated to the pensions board as settlement.
“Those properties were in poor condition and neglected. The board opted to repurchase them at a negotiated rate of N4.5 billion, which was approved by the state government after clearance from relevant agencies,” he said.
On the issue of illegal deductions under the previous government, Fagge admitted that investigations were hindered by missing records. “Without evidence, litigation would be fruitless and distract from our core duty—serving the pensioners,” he said.
Presently, he said, the board has over N4 billion in savings,adding that a proposal had been submitted to the Board of Trustees to use N3 billion to acquire more properties and the remaining N1.5 billion to support pensioners’ welfare.
The executive chairman then raised concerns over the rising number of retirees in the state. “In December alone, over 4,100 new pensioners were enrolled due to mass retirements. With weekly interviews of about 200 to 300 retirees, the pressure is mounting,” he said.
Inspite pf the challenges, he expressed optimism, citing recent increases in public sector salaries and upcoming mass employment plans by the state government as potential boosts to pension contributions.
“Our biggest challenge now is the surge in gratuity and pension obligations due to increased retirement benefits. But with continued reforms and support from the government, we believe we are on a sustainable path,” he said.
Describing the pension board office as a “hospital of last resort,” Fagge shared stories of desperate pensioners seeking funds for hospital bills, rent and basic sustenance.
“Our concern is the people’s concern. We are working to ensure that no pensioner is left behind. By God’s grace, we are seeing light at the end of the tunnel,” he added.
